The regulatory sandbox allows businesses to test innovative products, services, business models and delivery mechanisms in the real market, with real consumers. The sandbox is open to authorised firms, unauthorised firms that require authorisation and technology businesses.

The UK FCA announced the successful admission on 4 July 2018, describing 20|30’s offering as “a Distributed Ledger Technology (DLT) based platform that will allow companies to raise capital in a more efficient and streamlined way”.

20|30 will now begin testing its platform, which enables the primary issuance of equity tokens using the Ethereum blockchain. The test will be conducted using Nivaura’s integration with London Stock Exchange Group’s (LSEG) Turquoise platform.

The test will enable the primary issuance of equity tokens to institutional investors through a regulated trading venue and aims to demonstrate a commercially viable model for tokenising company equity. 20|30’s overall goal is to establish equity tokens as a widely accepted means for companies to raise capital.

It will allow investors on LSEG’s Turquoise platform to place orders for equity tokens and matched orders will be cleared and settled on the blockchain using Nivaura’s custody services.

The investment platform creates a compliant, easy, safe and transparent process for approved investors to purchase equity tokens. For companies seeking equity investors, the platform should increase access to capital from larger investors.